Correlation Between VanEck Crypto and SANTANDER
Can any of the company-specific risk be diversified away by investing in both VanEck Crypto and SANTANDER at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining VanEck Crypto and SANTANDER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Crypto Blockchain and SANTANDER UK 10, you can compare the effects of market volatilities on VanEck Crypto and SANTANDER and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in VanEck Crypto with a short position of SANTANDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Crypto and SANTANDER.
Diversification Opportunities for VanEck Crypto and SANTANDER
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and SANTANDER is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Crypto Blockchain and SANTANDER UK 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANTANDER UK 10 and VanEck Crypto is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on VanEck Crypto Blockchain are associated (or correlated) with SANTANDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANTANDER UK 10 has no effect on the direction of VanEck Crypto i.e., VanEck Crypto and SANTANDER go up and down completely randomly.
Pair Corralation between VanEck Crypto and SANTANDER
Assuming the 90 days trading horizon VanEck Crypto Blockchain is expected to generate 58.51 times more return on investment than SANTANDER. However, VanEck Crypto is 58.51 times more volatile than SANTANDER UK 10. It trades about 0.23 of its potential returns per unit of risk. SANTANDER UK 10 is currently generating about 0.02 per unit of risk. If you would invest 988.00 in VanEck Crypto Blockchain on August 28, 2024 and sell it today you would earn a total of 284.00 from holding VanEck Crypto Blockchain or generate 28.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Crypto Blockchain vs. SANTANDER UK 10
Performance |
| Timeline |
| VanEck Crypto Blockchain |
| SANTANDER UK 10 |
VanEck Crypto and SANTANDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Crypto and SANTANDER
The main advantage of trading using opposite VanEck Crypto and SANTANDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Crypto position performs unexpectedly, SANTANDER can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SANTANDER will offset losses from the drop in SANTANDER's long position.| VanEck Crypto vs. VanEck Morningstar SMID | VanEck Crypto vs. VanEck New China | VanEck Crypto vs. VanEck Hydrogen Economy | VanEck Crypto vs. VanEck Semiconductor UCITS |
| SANTANDER vs. Park Hotels Resorts | SANTANDER vs. Silvercorp Metals | SANTANDER vs. Endeavour Mining Corp | SANTANDER vs. Panther Metals PLC |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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